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ZARA: fast fashion
Contents Creation of ZARA Environment Analysis ZARA’s Strateies Strategic Proposals
Creation of ZARA 1963-1974 Amancio Ortega Gaona founded Inditex 1975 The first zara store was opened in Spain 1976-1984 Spreading of zara store in Spain 1985 Zara started to enter the overseas market (in Portugal) 1989 Entering New York City, in USA 1990 Entering Paris, in France 1991-2004 Spreading to the whole world including Japan(1998) 2007 Entering R.O.Korea in 30, April at COEX Mall and Lottte Young Plaza 
Creation of ZARA Inditex Chair man: Amancio Ortega Gaona Location of Headquarter: Coruña in Spain Annual profit: €94billion
Creation of ZARA Zara One brand of the Inditex group Zara's profit makes up 75% of the Inditex. Representative success case of  Time to Marke t Date of Establishment The first retail shop was opened in 1975 Number of Stores 1440 Stores in 77 Countries Domestic Expansion(Korea) 3 Stores were opened at Coex,Lotte Department Store etc. in April30,2007(now 17) Numbers of Employees 32,000employees (20,000 are stockman)
Creation of ZARA

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Zara: Fast Fashion

  • 2. Contents Creation of ZARA Environment Analysis ZARA’s Strateies Strategic Proposals
  • 3. Creation of ZARA 1963-1974 Amancio Ortega Gaona founded Inditex 1975 The first zara store was opened in Spain 1976-1984 Spreading of zara store in Spain 1985 Zara started to enter the overseas market (in Portugal) 1989 Entering New York City, in USA 1990 Entering Paris, in France 1991-2004 Spreading to the whole world including Japan(1998) 2007 Entering R.O.Korea in 30, April at COEX Mall and Lottte Young Plaza 
  • 4. Creation of ZARA Inditex Chair man: Amancio Ortega Gaona Location of Headquarter: Coruña in Spain Annual profit: €94billion
  • 5. Creation of ZARA Zara One brand of the Inditex group Zara's profit makes up 75% of the Inditex. Representative success case of Time to Marke t Date of Establishment The first retail shop was opened in 1975 Number of Stores 1440 Stores in 77 Countries Domestic Expansion(Korea) 3 Stores were opened at Coex,Lotte Department Store etc. in April30,2007(now 17) Numbers of Employees 32,000employees (20,000 are stockman)
  • 7. ZARA’s Value Chain Fast fashion A contemporary term used by fashion retailers to acknowledge that designs move from catwalk to store in the fastest time (2weeks!) to capture current trends in the market Material Team Design Team Testing Stores Production Facility Sales Network An end - customer
  • 8. ZARA’s Environment Analysis Competitor Analysis Based on the most recent fashion trends presented at Fashion Week in both the spring and the autumn of every year, these are designed and manufactured quickly and cheaply to allow the mainstream consumer to take advantage of current clothing styles at a lower price External Environment
  • 9. Zara’s SWOT Analysis Zara’s internal analysis ZARA’s Internal Environment Analysis
  • 10. 1.ZARA’s Core Competence [Core Competency-Tree] Vertical Systematization of Design and Production Process Recreational ablility of Fashion IT System for collecting Customer Information Real estate Products meeting the demand for fast-changing and short life-cycled fasion trends Increasing Property Values & Increase asset, management Shirts, Jeans, Jacket One-piece, Skirts, Jacket Bags, Belts, Perfumes Stores
  • 11. 2.Assessment for ZARA’s Core Competencies
  • 12. 3.ZARA’s Core Competence Analysis[VRIO] [VRIO Framework] Valuable ? Yes
  • 13. [VRIO Framework] 3.ZARA’s Core Competence Analysis[VRIO] Valuable ? Yes Yes
  • 14. [VRIO Framework] 3.ZARA’s Core Competence Analysis[VRIO] Valuable ? Costly to Imitable? Yes Yes Yes
  • 15. [VRIO Framework] 3.ZARA’s Core Competence Analysis[VRIO] Valuable ? Costly to Imitable? Exploited by organization ? Yes Yes Yes Yes
  • 16. 2 3.ZARA’s Core Competence Analysis[VRIO] Competitive implications High possibility for maintaining Competitive advantage continuously Economic Performance Above Average
  • 17. ZARA’s Success Factors[4 Core Competencies] Utilizing Stores IT System Recreation of Fashion Vertical Systematization Of Production Process
  • 18. ZARA’s Success Factors 5 Keys to Success 1. Utilizing shops actively 2. Short period of Collection preparation 3. The principal of small quantity production 4. Creating the value from product differentiation 5. Utilizing the advantage of geographical condition
  • 19.
  • 20. Short period of Collection preparation Spending only 2 weeks from The market research to the sales (Normally it takes 6 months) ZARA’s Success Factors Market Research Within 1 day Design Needs Production Closely located with HQ Transport-ation Small mass of product Customers Display Tight control of stores
  • 21. Small Quantity Production Continuous Production of New Product, Without relying on HIT Product ZARA’s Success Factors Small Quantity Batch Production Maximizing Product Scarcity Push customers to buy their product immediately Increasing the frequency of visiting the store of customers Let customers open their wallet
  • 22. Creating the value from product differentiation Because of the fast turnover ratio , customers are hard to find the same cloth in the street Customers enjoy the scarcity like high price product with relatively economical price New arrivals by regional groups ZARA’s Success Factors
  • 23. Utilizing the advantage of geographical condition Hiring the spanish and the portuguese instead of people in the third world countries to utilize the advantage of geographical condition By positioning the design and production facility closely, make the fast action to the market situation possible Most of suppliers are located closely ZARA’s Success Factors
  • 24. ZARA’s Success Factors 5 Keys to Success 1. Utilizing shops actively 2. Short period of Collection preparation 3. The principal of small quantity production 4. Creating the value from product differentiation 5. Utilizing the advantage of geographical condition Zara hits the global market
  • 25. Weakness of Current Strategies
  • 27.  

Editor's Notes

  1. _One brand of the Inditex group Zara's profit makes up 75% of the Inditex. Representative success case of Time to Market ( 언니 ! 근데 여기에서 Time to market 이 어떤건지 아시나요 ? ㅠㅠㅠ )   Date of establishment: The first retail shop was opened in 1975 Number of stores: 1440 stores in 77 countries.( 이게 인디텍스 홈페이지에 나와 있는 수치라서 이거로 바꾸는 게 좋을 것 같아요 !) Domestic(Korea) expansion: 30, April, 2007. 3 stores were opened at coex, lotte ect. (Now, we have 17) Number of employees: 32,000 people
  2. A term used by fashion retailers product driven
  3. 'Proud Realisers of Added Value' 의 약어로 , 말 그대로 보자면 ‘부가 가치를 새롭게 깨달은 사람들’이라는 뜻이다 . 프라브족은 명품이나 브랜드가 무조건 좋은 것은 아님을 자각하여 , 브랜드보다는 최신 유행과 싼 가격에 자신의 개성을 추구하는 사람들이다 .
  4. Despite variety of racial, cultural and generational differences, share senses toward fashion This makes ZARA have competitive advantage against external threats and new opportunities
  5. Hired more than 200 designers Based on IT System, prompt responses to customer needs and trends are applied to PRODUCTION LINE  Core competence which other companies cannot follow
  6. High possibility for maintaining Competitive advantage continuously
  7. 현 전략
  8. 각 항목에 대한 간단한 사례를 구두로 전하는걸로 하자 … 피티가 너무 길어진다 ..
  9. 다음 슬라이드가 Zara Brand Loyalty 설명하는건데 그건 그냥 말로 설명할께 추가로 불라불라 이렇게 ㅋㅋㅋㅋ 여기까지 5 개 Key factor 설명했는데 뒤에 또 나오니까ㅋㅋㅋㅋㅋ p25 삭제한다 ???